Excelling in accelerating

Breaking down Houston's 4 new startup accelerator programs

Houston has seen four new accelerators enter the market this year. Photo by Zview/Getty Images

It's official — 2019 is the year of accelerators in Houston. Four different accelerator programs have announced plans to launch Houston programs this year so far — and they are all bringing something different to the table.

All four of the programs represent global programs or big companies recognizing the potential in Houston, which, according to Yael Hochberg, head of the Rice University Entrepreneurship Initiative, is a key part of the equation.

"When you're talking about a place like Houston, what we need here right now is interest from the outside," Hochberg says. "We need some certification by people from the outside that in fact this is a destination for innovation and entrepreneurship."

Houston's most successful accelerator has been homegrown — right out of the Texas Medical Center. TMCx is on its ninth cohort since it launched in 2014.

Also founded in Houston, SURGE Accelerator had a different fate. It launched in 2011 and closed in 2016. Hochberg says there are a number of reasons for the program's demise including disengaged corporations.

"I do feel there's a lot of opportunity around this, and I don't think we should look at SURGE as some sort of indicator of what will happen to an accelerator in the city," she says. "If anything, I would look at TMCx and look at the potential that we see from that."

The biggest benefit to these accelerator programs, Hochberg says, is the new influx of startups that come to Houston. It's not only the accelerators' cohorts, but just the feasibility of the success and resources available. More startups translates to more investments.

"When you have startup activity and good startups, then money, private investment money will follow," Hochbergs says. "Private investment money doesn't just show up."

But bringing in these programs puts the pressure on the city to focus on the environment it's providing new companies and talent. Innovative companies thrive in major metros with things like protected bike lanes, city living, sustainability — and Houston needs to work on these things, Hochberg says, adding that Houston's ability to boast on its single-family homes is less and less attractive to younger demographics.

Building the city up with these types of infrastructure is going to be key when it comes to retaining these startups that accelerators bring in.

"We can create accelerators from here until tomorrow," Hochberg says. "People will send a couple of people down for two days a week to Houston sit at the accelerator, but they'll keep their company somewhere else and not actually move to Houston. Maybe if you're lucky, they'll open up like a little satellite office. We don't want that."

So, what exactly are the differences between these four new startup accelerators? Here's a breakdown of each.

MassChallenge Texas

Photo via greenstreetdowntown.com

MassChallenge Texas first announced its Houston program in January. The Boston-based accelerator program is currently in its final phase of deciding its inaugural cohort. The program is for early stage companies, and is industry agnostic. Jon Nordby, former director of strategy at Houston Exponential, leads the Houston program as managing director.

Launch: July 2019
Location: Downtown Houston
Number of cohort companies: 25
Length: 6 weeks — July through August
Origin: Boston
Requirements: The program looks for applicants that haven't raised more than $500,000 in equity-based funding and have generated less than $1 million in revenue over the past year.
Equity requirements: None.
Prizes on the line: Free office space, mentorship, and, usually, monetary prizes. (Currently, the organization hasn't confirmed cash prizes for the inaugural cohort.)

Founder Institute

Houston's new Founder Institute chapter has teamed up with Alice. Image courtesy Founder Institute

Founder Institute Houston is the earliest stage accelerator that's not associated with a university. Companies must be in the pre-funding stage of growth, and, while 30 companies will be chosen per cohort, only a fraction will complete the full 14 weeks. The Silicon Valley-originated concept now has chapters in almost 200 cities around the world. FI announced its new chapter in Houston in March after first launching in Austin.

Launch: May 2019
Location: Downtown (out of Station Houston)
Number of cohort companies: 30
Length: 14 weeks
Origin: Silicon Valley
Requirements: Company must be pre-funding.
Equity requirements: 4 percent
Prizes on the line: Cash prizes, discounts, access to worldwide alumni network, etc.

Plug and Play Tech Center

Ahead of entering the Houston market later this year, Silicon Valley's Plug and Play hosted three days of programming surrounding innovation in energy and health care. Natalie Harms/InnovationMap

Plug and Play Tech Center confirmed they were entering the Houston market earlier this month. The Silicon Valley organization has 30 locations all over the world and plans to open five new locations in the United States over the next six months to a year — one being Houston.

Launch: Fourth quarter 2019
Location: Currently scouting for a location.
Number of cohort companies: 20
Length: Three months, twice a year.
Origin: Silicon Valley
Requirements: The program is stage agnostic, but cohorts are focused on a specific industry. Houston's likely to be health and energy/sustainability, though nothing is set in stone.
Equity requirements: None
Prizes on the line:In-house venture capital opportunities, corporate connections, etc.

Ion Smart Cities Accelerator

The historic Sears building in Midtown will transform into The Ion, a Rice University-backed hub for innovation. Courtesy of Rice University

In April, the city announced that Microsoft and Intel were backing a Smart Cities Accelerator program that would accelerate companies with solutions to some of Houston's key problems. The first cohort will be focused on solutions within resilience and transportation, but each cohort will have a different set of issues. With these rotating themes, every cohort will be different.

Launch: September 2019
Location: Station Houston (then later The Ion, when it opens)
Number of cohort companies: 10
Length: 10 months
Requirements: The first set of companies will be chosen for their ability to solve problems within mobility and transportation in Houston. (Other cohorts will have other topics.)
Prizes on the line: Pilot programs and permanent business from the city of Houston.

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Building Houston

 
 

Electric vans will now be delivering to Houston. Photo courtesy of Amazon

Amazon CEO/occasional space traveler Jeff Bezos is doing his best to supplant a certain jolly fellow from the North Pole as tops for holiday gift delivery.

His latest move: Amazon is rolling out more than 1,000 electric delivery vehicles, designed by electric vehicle manufacturer Rivian, ready to make deliveries in more than 100 cities across the U.S. On the Texas good list: Houston, Austin, and Dallas. Bezos' juggernaut began deliveries in Dallas in July, along with Baltimore, Chicago, Kansas City, Nashville, Phoenix, San Diego, Seattle, and St. Louis.

These zero-emissions vans have delivered more than 5 million packages to customers in the U.S., according to Amazon. The latest boost in vehicles now includes Houston and Austin; Boston; Denver; Indianapolis; Las Vegas; Madison, Wisconsin; Newark, New Jersey; New York, Oakland, California; Pittsburgh, Portland, Oregon; Provo, Utah; and Salt Lake City.

Plans for the Amazon and Rivian partnership call for thousands of vehicles on the road by the end of the year and 100,000 vehicles by 2030.

“We’re always excited for the holiday season, but making deliveries to customers across the country with our new zero-emission vehicles for the first time makes this year unique,” said Udit Madan, vice president of Amazon Transportation, in a statement. “We’ve already delivered over 5 million packages with our vehicles produced by Rivian, and this is still just the beginning—that figure will grow exponentially as we continue to make progress toward our 100,000-vehicle goal.”

This all comes as part of Amazon's commitment to reaching net-zero carbon by 2040, as a part of its The Climate Pledge; Amazon promises to eliminate millions of metric tons of carbon per year with it s commitment to 100,000 electric delivery vehicles by 2030, press materials note.

Additionally, Amazon announced plans to invest more than $1 billion over the next five years to further electrify and decarbonize its transportation network across Europe. This investment is meant to spark innovation and encourage more public charging infrastructure across the continent.

“Fleet electrification is essential to reaching the world’s zero-emissions goal,” said Jiten Behl, chief growth officer at Rivian, in a statement. “So, to see our ramp up in production supporting Amazon’s rollout in cities across the country is amazing. Not just for the environment, but also for our teams working hard to get tens of thousands of electric delivery vehicles on the road. They continue to be motivated by our combined mission and the great feedback about the vehicle’s performance and quality.”

A little about the vans: Drivers’ favorite features include a spacious cabin and cargo area, superior visibility with a large windshield and 360-degree cameras, and ventilated seats for fast heating and cooling — a must for Bayou City summers ... or winters, for that matter.

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This article originally ran on CultureMap.

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